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Section 538 of the Housing Act of 1949, as amended (42 U.S.C. section 1490p-2), authorizes the Secretary of Agriculture to charge certain fees to lenders for loan guarantees to offset costs associated with loan guarantees. The Agency's implementing regulation at 7 CFR part 3565 sets the exact amount of the initial guarantee fee and the annual guarantee that is being charged by the Agency. This final rule will remove from the regulations a specification of the amount that the Agency will charge for the initial and annual guarantee fees. This change will allow the Agency the flexibility to establish or make any future changes to the initial and annual guarantee fees without the need for a regulatory change. To provide the public advance notice, the Agency will be required to publish any changes to the initial and annual guarantee fees in the Federal Register.